While the Iraq war continues to drain lives and resources, the political debate within the US has quietened, out of despair and exhaustion on the Democratic side and a dissipation of even empty expressions of optimism on the part of the administration and its supporters.

There has, though, been a rally in the price of Iraq's traded international debt. Since mid-August, the price of the 5.8 per cent Iraqi bonds of 2028 has risen from its all-time low of 55 to a level of about 60. That brings the yield to maturity down to a still high 10.7 per cent, a bit lower than Ecuador's. And that is on significant volume, particularly for an issue that is not rated by the ratings agencies. The most recent numbers for turnover of the 2028s are for the second quarter of this year, during which $779m changed hands through bond dealers. The bid/ask spread is about 1 point, which indicates that dealers do not have much inventory, but is considerably lower than Ecuador's 2 to 3 points per trade. According to Mr Market, Iraq is a lot safer than Ecuador.